This new capital injection follows an initial close of $40 million in April 2023, aimed at bridging the persistent funding gap for climate tech startups, particularly those in the seed and Series A stages across sub-Saharan Africa.
A key component of the final investment is a $1.5 million guarantee provided by the Korea Green Resilient and Innovative Development (K-GRID) Programme.
Farid Fezoua, IFC’s Global Director for Disruptive Technologies, Services, and Funds, expressed enthusiasm about the potential of climate tech in Africa.
He noted that businesses in this sector are not only contributing to economic growth but also helping to reduce emissions and resource consumption.
“IFC’s investment in Equator Africa reflects our commitment to supporting these businesses to deliver solutions, from renewable energy to electric vehicles,” he said.
Equator Africa focuses on early-stage, tech-enabled companies in sub-Saharan Africa, with a particular interest in sectors such as green energy, agriculture, and mobility.
While its primary focus is on Kenya and Nigeria, the fund has also made investments in companies operating in Côte d’Ivoire, Ghana, Madagascar, Senegal, Sierra Leone, South Africa, and Zambia.
Among the six companies that have already received funding from Equator Africa are SunCulture, a Kenyan company providing solar-powered energy and irrigation systems for farmers, and Roam, a company that designs and manufactures electric motorcycles and buses.
Additionally, Odyssey, a platform specializing in investment and asset management for distributed renewable energy infrastructure, has also benefitted from the fund.
“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.
Wecyclers Corporation, a leading Nigerian recycling startup, has secured $2 million in funding to recycle 30,000 tonnes of plastics over the next five years
The Electrification Financing Initiative (ElectriFI), funded by the European Union, has made its first investment in the African ecological mobility sector, committing $1.6 million to Ugandan startup Gogo Electric (formerly Bodawerk).
El Kheta, an Egyptian online learning platform, has secured a significant investment of US$400,000 from EdVentures, Nahdet Misr Group’s venture capital arm.
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